PETALING JAYA: The cost of overseas travel by government servants related to any procurement cannot be borne by any private company anymore, the treasury has decided.
The cost must now be predetermined and included in the contract with the successful tenderer.
According to a circular issued last week, the treasury has also stopped the practice of using the annual allocations for operational expenditure of the agencies for this purpose.
Among the overseas assignments listed are pre-delivery inspections, tests and assessment of factories, project monitoring, executive reporting meetings, final acceptance tests, and training.
“The visits must be to verify the status of the product, monitor the progress and to represent the agencies in discussions with the contractor. This must be for ongoing jobs and must be included as a clause in the contract.
“As for overseas travel for training, technology transfer and maintenance to improve the skills of the agency’s officers, these must also be stipulated in the contract with all details and costs as part of the contractual obligation,” the circular read.
When contacted, deputy finance minister Steven Sim said the move was to bring about more transparency and accountability in the government procurement exercise.
“The requirement for travel for inspection work, among others, must be predetermined in the contract and the cost listed,” he said.
“The company involved in the contract is not allowed to finance such trips as only then can assessment by government representatives be independent.” - FMT
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